The economic effects of the EU biofuel target

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Abstract:In this paper we use the CGE model DART to assess the economic impacts and optimality of the different aspects of the EU climate package. A special focus is placed on the 10% biofuel target in the EU. In particular we analyze the development in the biofuel sectors, the effects on agricultural production and prices and finally overall welfare implications. The main findings include that the EU emission targets alone only lead to minor increases in biofuel production. Additional subsidies are necessary to reach the 10% biofuel target. This in turn increases European agricultural prices by up to 7%. Additional welfare losses compared to a cost-effective scenario where the EU 20% emission reduction target is reached occur due to separated carbon markets and the renewable quotas. The biofuel target has relatively small negative or even positive welfare effects in some scenarios.

Addressing future trade-offs between biodiversity and cropland expansion to improve food security

“…Klepper and Peterson 2006b), and agricultural and biofuel policies (e.g. Kretschmer et al 2009) among others.…”

The impacts of biofuels targets on land‐use change and food supply: A global CGE assessment

“…There are a number of recent studies analyzing impacts of biofuels (e.g., Hertel et al 2010;Al-Riffai et al 2010;Kretschmer et al 2009). We tried to compare our results to that from existing studies.…”

“…We also compute price multipliers A number of existing general equilibrium studies reports impacts on commodity prices of the expansion of biofuels. Kretschmer et al (2009) finds that a policy to meet EU's 10% biofuel target by 2020 would cause world prices of corn, sugar crops, wheat and other grains by 0.2% to 1.7% higher relative to the reference scenario in 2020. Note that these impacts are much smaller as compared to our price impacts because they simulate only EU targets, whereas we simulate existing targets of all countries.…”

The impact of advanced biofuels on aviation emissions and operations in the U.S.

“…These include high production costs and lack of integration of aviation biofuels into regulatory frameworks (Carter et al, 2011, Carriquiry et al, 2011Gegg et al 2014), limits in scale-up due to feedstock availability (U.S. DOE, 2011, Seber et al, 2014, environmental and socio-economic consequences of large-scale land-use change and competition with food and feed needs (Searchinger et al 2008;Kretschmer et al, 2009;Serra and Zilbermann, 2013), water consumption associated with biomass cultivation (Scown et al, 2011, Staples et al, 2013, and the time required for scaling-up biomass cultivation and conversion facilities (Richard, 2010). This paper deals with the impact of large-scale deployment of advanced aviation biofuels from perennial grasses such as switchgrass or miscanthus using a set of technologies known as advanced fermentation.…”